CapitaCommercial Trust reports 6.8% rise in DPU

Singapore’s CapitaCommercial Trust reported a 6.8 per cent increase on-year in its distribution to unit-holders for Q4 2012. This was mainly due to higher income from some of its buildings, as well as contributions from a newly acquired asset, Twenty Anson.

CCT, which includes buildings like Raffles City Tower, Capital Tower, Six Battery Road in its portfolio, reported a fourth quarter distribution per unit of 2.05 cents

For the full year, the REIT’s distribution per unit rose 6.9 per cent to 7.52 cents. Its distributable income for the fourth quarter climbed seven per cent to 58.3 million.

The REIT said its occupancy rate increased to 97.2 per cent during Q4 2012 from 97.1 per cent in Q3, while Singapore’s CBD average occupancy rate declined from 93.2 per cent in Q3 2012 to 92.2 per cent in Q4 2012.

Looking ahead, the REIT’s manager pointed out that there is little risk of an oversupply in the Singapore office market — just one new office building will be added to the supply in Singapore this year — and the office rental market is showing signs of bottoming out.

Lynette Leong, CEO of CapitaCommercial Trust Management, said: “This year’s supply is going to be quite low, at 0.8 million square feet. The average for the next three years is also going to be 0.8 million square feet. In the last three years, the demand was about 1.5 to 1.8 million square feet per annum.

“If you examine the rental trend, the rate of decline has also eased, so that is also another signal that the rent is reaching a trough. So we think that this year is a year that is poised for rental growth.”

Source : Channel NewsAsia – 23 Jan 2013

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